Chapter 16: Controlling And Such

Question 1

Controlling

Answer 1

Monitoring performance, comparing it with goals, and taking corrective action when needed

Question 2

Six reasons why control is needed

Answer 2

1) to adapt to change and uncertainty
2) to discover irregularities and errors
3) to reduce costs, increase productivity, or add value
4) to detect opportunities or increase innovation
5) to provide performance feedback
6) to decentralize decision making, and facilitate teamwork

Question 3

Control process steps

(4 steps)

Answer 3

1) establish standards
2) measure performance
3) compare performance to standards
4) take corrective action if needed

Question 4

Control standard

Answer 4

The first step in control process

The desired performance level for a given goal

Question 5

Control charts

Answer 5

Visual statistical tool used for quality control purposes

Question 6

Management by exception

Answer 6

Control principle that states managers should be informed of a situation only if data show a significant deviation from standards

Question 7

Feedforward control

Answer 7

Focussed on preventing future problems

Question 8

Concurrent Control

Answer 8

Entails collecting performance information in real time

Question 9

Feedback control

Answer 9

Amounts to collecting performance information after a task or project is done

Question 10

3 levels of control

Answer 10

Strategic control by top managers

Tactical control by middle managers

Operational control by first line managers

Question 11

Strategic control

Answer 11

Monitoring performance to ensure that strategic plans are being implemented and taking corrective action when needed

Question 12

Tactical control

Answer 12

Motiniroing performance to ensure that tactical plans - those at the divisional or department level - are being implemented and taking corrective action as needed

Question 13

Operational control

Answer 13

Monitoring performance to ensure that operational plans - day to day goals - are being implemented and taking corrective action wheh needed

Question 14

Six areas of control

Answer 14

Physical 
Human 
Informational
Financial 
Structural 
Cultural

Question 15

Physical area

Answer 15

Includes buildings, equipment, and tangible products

Question 16

Human resource area

Answer 16

Monitor employees personality tests l, drugs tests, performance tests, job satisfication

Question 17

Informational area

Answer 17

Production schedules
Sales forecasts
Analyses of competition
Public briefings

Question 18

Financial area

Answer 18

What’s the advertising budget, how much is owed, is there enough cash on hand

Question 19

Structural area

Answer 19

Who reports to who

2 types: beaurocratic and decentralized

Question 20

Bureaucratic control

Answer 20

The use of rules, regulations, formal authority to guide performance

Question 21

Decentralized control

Answer 21

An approach to organizational control that is characterized by informal and organic structural arrangements, opposite of bureaucratic control

Question 22

Supply chain

Answer 22

Sequence of suppliers that contribute to creating and delivering a product, from raw materials to production to final buyers

Question 23

Budget

Answer 23

Formal financial projection

Question 24

Incremental budgeting

Answer 24

Allocating increased productivity decreased funds to a department by using the last budget period as a reference point; only incremental changes in the budget request are reviewed

Question 25

Fixed budget

Answer 25

Allocation of resources on the basis of a single estimate of costs for

Question 26

Variable budget

Answer 26

Allowing the allocation of resources to vary in proportion with various levels of activity

Question 27

Financial statement

Answer 27

Summary of some aspect of an organizations financial status

Question 28

Balence sheet

Answer 28

Summary of an organizations overall financial worth - assets and liabilities - at a specific point in time

Question 29

Income statement

Answer 29

Summary of an organizations financial results - revenues and expenses - over a specified period of time

Question 30

Audits

Answer 30

Formal certifications of an organizations financial and operational systems

Question 31

External audit

Answer 31

Formal verification by outside experts of an organization’s financial accounts and statements

Question 32

Internal audit

Answer 32

A verification of an organizations financial accounts and statements by the organizations own professional staff

Question 33

Deming management

Answer 33

Ideas proposed by W. Edwards for making organizations more responsive, more democratic, and less wasteful

Question 34

PDCA cycle

Answer 34

Plan-do-check-act cycle using observed data for continuous improvement of operations

Question 35

Total quality management (TQM)

Answer 35

A comprehensive apporach - led by top management and supported throughout the organization - dedicated to continuous quality improvements , training, and customer satisfaction

Question 36

Two core principles of TQM

Answer 36

1) people orientation: everyone involved with the organization should focus on delivering value to customers
2) improvement orientation: everyone should work on continuously improving the work processes

Question 37

Continuous improvement

Answer 37

Ongoing, small, incremental improvements in all parts of an organization

Question 38

Kaizen

Answer 38

Japanese philosophy of small continuous improvements that seek to involve everyone at every level of the organization

Question 39

Outsourcing

Answer 39

Using suppliers outside the company to provide goods and services

Question 40

Reduced cycle time

Answer 40

The reduction of steps in the work process

Question 41

Statistical process control

Answer 41

Periodic random samples from production runs to see if quality of being maintained within a range of acceptability

Question 42

Six sigma

Answer 42

Rigorous statistical analysis process that reduces defects in manufacturing and service related industries

3.4 defects per million

Question 43

Lean six sigma

Answer 43

Quality control approach that focussed on problem solving and performance improvements - speed with excellence - of a well defined project

Question 44

ISO 9000 series

Answer 44

Quality control process companies must install - from purchasing to manufacturing to inventory shipping - that can be audited by independent quality control experts

Question 45

ISO 14000

Answer 45

Set of quality control procedure that extends the concept of ISO 9000 series, identifying standards of environmental performance